Chainlink Completes Collaboration Pilot with U.S. Banks

The pilot program tested a method of bringing traditional financial fund data onto the blockchain, with participation from major banks like JPMorgan and BNY Mellon.

Azcnews Chainlink Completes Collaboration Pilot With U.s. Banks

The Depository Trust and Clearing Corporation (DTCC), the world’s largest settlement system, along with blockchain oracle Chainlink, recently concluded a pilot program involving several major US banking firms. The program aimed to facilitate the tokenization of traditional finance funds.

Known as the Smart NAV Pilot program, it sought to standardize the provision of net asset value (NAV) data for funds across different blockchains. This was achieved through the utilization of Chainlink’s Cross-Chain Interoperability Protocol (CCIP), as outlined in a DTCC report dated May 16.

According to the report, the pilot demonstrated that by delivering structured data on-chain and establishing standard roles and processes, foundational data could be integrated into various on-chain applications. These include tokenized funds and “bulk consumer” smart contracts, which manage data for multiple funds.

These capabilities not only pave the way for future industry exploration but also enable various downstream use cases, such as brokerage applications, streamlined data dissemination, and easier access to historical fund data. Additionally, the pilot facilitated better-automated data management, minimized disruption to existing market practices for traditional financial institutions, allowed clients to access historical data without manual record-keeping, and offered broader API solutions for price data.

b86deede d807 45e0 95b7 05e1ddf8d041Key NAV pilot takeaways. Source: DTCC

Several U.S. banking firms took part in the pilot, including American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street, and U.S. Bank.

Following the release of the DTCC’s report, Chainlink’s native token, Chainlink, surged by 12.5%, as reported by CoinGecko. Over the past 12 months, LINK has experienced a remarkable gain of over 130%, aligning with the broader upward trend in the cryptocurrency market.

Related: Chainlink (LINK) Demonstrates Remarkable Growth

The DTCC’s report coincides with growing interest in real-world asset tokenization among major traditional financial institutions.

For instance, on March 19, BlackRock introduced a tokenized money market fund (MMF) named BUIDL on the Ethereum network, offering native U.S. dollar yields. Investors can purchase tokens representing shares in the fund, which primarily invests in assets such as U.S. Treasury bills. Referred to as the “digital liquidity fund,” it operates as an ERC-20 token called BUIDL, fully digitized on the Ethereum blockchain.

5.0/5

(3 votes)
  1. Avatar of Anwar
    Anwar

    Good

  2. Avatar of Abdulmuiz
    Abdulmuiz

    Ok

  3. Avatar of Suleiman alkanami
    Suleiman alkanami

    What is withdraw

  4. Avatar of
    Anonymous

    Ok

Comments are closed.

Latest

Azcnews Breaking Zklend Loses $4.9m In Starknet Exploit

News | Editor Choice | Policy & Regulations

zkLend Loses $4.9M in Starknet Exploit, Offers Hacker 10% Bounty for Return of Funds

Decentralized lending protocol zkLend has fallen victim to a $4.9 million exploit on the Starknet network, marking a resurgence in crypto-related hacks after a decline in January.

Azcnews Breaking Us And Uk Refuse To Sign International Agreement On Ethical Ai

News | AI | Editor Choice

US and UK Refuse to Sign International Agreement on Ethical AI

The US and UK declined to sign an international AI agreement, citing concerns over excessive regulation, while the summit emphasized ethical AI development, innovation, and global cooperation.

Azcnews Breaking Bitcoin’s Price Fluctuation And The Role Of Otc Transactio

News | Bitcoin | Editor Choice

Bitcoin’s Price Fluctuation and the Role of OTC Transactions

Bitcoin briefly dropped to $94,900 last night before recovering slightly. While market sentiment and institutional strategies often dominate discussions on Bitcoin’s volatility, the impact of over-the-counter (OTC) transactions remains an overlooked but crucial factor.

Azcnews Breaking Bnb Chain’s Four.meme Suffers $183k Exploit In Security Breach

News | Editor Choice | Memecoin

BNB Chain’s Four.Meme Suffers $183K Exploit in Security Breach

The memecoin launch platform has temporarily suspended the creation of new liquidity pools as it works to resolve a recent exploit.

Azcnews Breaking Litecoin Etf Has A 90% Chance Of Sec Approval

News | Altcoin | Editor Choice | Policy & Regulations

Litecoin ETF Has a 90% Chance of SEC Approval

Bloomberg ETF analysts suggest that Litecoin's regulatory filings have been acknowledged, indicating that the SEC likely classifies it as a commodity.